Husband inherited a house, sold the house at a loss in 2008. I understand about Sch. D Disposition info but what box do I check in Part 1: Type of investment or other property- Do I check L? Other property tangible? Thank you in advance for you help!

The loss on the sale of non-investment property is not deductible, as it is considered personal property. So no need to report the sale on Schedule D.

If the sale of the house was reported on Form 1099-S, they MAY want to report it on Schedule D as a neutral sale (no gain or loss) in order to properly account for the Form 1099-S and avoid an IRS audit letter.

If there is no Form 1099-S, then ebaines is correct that is does not have to be reported.